The Paths to Increasing Australian The Paths to Increasing Australian ProsperityProsperity

Address by the Treasurer, Peter Costello MP, to the Australian Financial Review Leaders'

Luncheon,

Sydney, 7 August 2002

Determinants of GDPDeterminants of GDP

Capital deepeningCapital deepening

Multifactor productivityMultifactor productivity

Average hours workedAverage hours worked

Unemployment rateUnemployment rate

Participation rateParticipation rate

Share of population 15+Share of population 15+

Total populationTotal population

ProductivityProductivity

ParticipationParticipation

PopulationPopulation

EmploymentEmployment

GDPGDP

Components of average annual Components of average annual GDP growth over the last 40 yearsGDP growth over the last 40 years

-1

0

1

2

3

4

Population Share ofpopulation 15+

Participationrate

Unemploymentrate

Average hrsworked

Labourproductivity

Real GDP

-1

0

1

2

3

4

Population Participation

Productivity

Percentage Contribution Percentage Contribution

Child and aged to working-age ratiosChild and aged to working-age ratios

0

10

20

30

40

50

60

70

1972 1982 1992 2002 2012 2022 2032 2042

0

10

20

30

40

50

60

70

Child Aged Combined

Per cent Per cent